Acadia Healthcare(ACHC)2025-02-27 21:25Financial Agreements and Borrowing - The company entered into a credit agreement providing for a 425.0 million senior secured term loan facility, both maturing on March 17, 2026[18]. - In 2024, the company borrowed 15.0 million, while in 2023, it borrowed 35.0 million[22]. Revenue and Growth - As of December 31, 2024, the company operated 262 behavioral healthcare facilities with approximately 11,850 beds across 39 states and Puerto Rico, generating revenue of 2,928.7 million in 2023[37]. - For the year ended December 31, 2024, revenue sources included 56.5% from Medicaid, 26.0% from commercial payors, 14.2% from Medicare, and 3.3% from other payors[27]. - The company added 312 beds to existing facilities during the year ended December 31, 2024, and opened four wholly-owned facilities and one joint venture facility, totaling 464 new beds[30][33]. - Acute inpatient psychiatric facilities accounted for 53% of total revenue for the year ended December 31, 2024, followed by specialty treatment facilities at 19%, comprehensive treatment centers at 17%, and residential treatment centers at 11%[36]. - The company plans to expand its facility and bed count, leveraging its national marketing strategy to attract new patients and referral sources[26]. Capital Expenditures and Compliance - The company’s maintenance capital expenditures were approximately 3% of revenue for the year ended December 31, 2024[29]. - The healthcare facilities are subject to numerous regulations, including compliance with federal, state, and local licensing and certification requirements, which are essential for participation in government healthcare programs[51]. - The company maintains accreditation from private entities like The Joint Commission and CARF, which is crucial for ensuring quality and safety in healthcare services[54]. - The company is subject to audits by federal, state, and commercial payors to validate the accuracy of claims, with potential liabilities arising from identified overpayments[56]. - The Anti-Kickback Statute and Stark Law impose strict regulations on financial arrangements with healthcare providers, with violations leading to significant penalties and exclusion from government programs[60][66]. - The federal False Claims Act allows the government to pursue healthcare providers for submitting false claims, with penalties ranging from 28,619 for each fraudulent claim[68]. - The company believes it is in material compliance with HIPAA regulations, which protect the privacy and security of patient information, although compliance costs may increase due to proposed regulatory changes[73][74]. Workforce and Diversity - The company has approximately 25,500 employees as of December 31, 2024, with 19,192 employed full-time[91]. - Approximately 73% of the company's employees are women and about 50% are people of color, reflecting its commitment to diversity[93]. - The company faces rising labor costs and turnover, leading to increased reliance on more expensive contract labor[95]. Market Trends and Competition - Legislative trends indicate a growing market for behavioral healthcare services, with 58.7 million U.S. adults suffering from mental illness in 2023, highlighting increased demand for services[24]. - The healthcare industry is highly competitive, with principal competitors including Universal Health Services, Inc. and other behavioral healthcare service companies[89]. Environmental and Safety Compliance - The company is subject to various federal, state, and local environmental laws, which may impose compliance costs and liabilities[84]. - The company has a statutory workers' compensation program with a 7.0 million per claim[83]. - The company is committed to providing a safe, therapeutic environment for patients and offers workplace safety training programs for employees[98].